Question

Which of the following is widely accepted as a definition of economic depression?

a long period of high budget deficits

a long period of negative economic growth

a period where employment rates rise sharply

a period where industries are disrupted by competition

Answer 1

A long period of high budget deficits

Step-by-step explanation:

In times of depression, consumer confidence and investments decrease, causing the economy to shut down. Economic factors that characterize a depression include:

-Substantial increases in unemployment

-A drop in available credit

-Diminishing output

-Bankruptcies

-Sovereign debt defaults

-Reduced trade and commerce

-Sustained volatility in currency values